Records that must be kept forever include vital personal documents (birth/death certificates, social security cards, marriage/divorce papers, adoption records), legal/estate documents (wills, trusts, power of attorney), and key financial or property records (property deeds, vehicle titles, retirement/pension plans, loan payoff documents). These are essential for proving identity, ownership, and legal rights throughout a lifetime.
Keep Forever
How long to keep your records. Generally, you must keep all required records and supporting documents for a period of six years from the end of the last tax year they relate to.
9 Paper Documents You Should Keep Forever in Their Original Form
You generally don't need to keep 20-year-old tax returns; the standard IRS recommendation is to keep most tax records for 3 years, but 6 years if you significantly underreported income (25% or more), or even indefinitely if you never filed or filed fraudulently. For most people, keeping records for 3-7 years covers standard audits, but if those returns are from a time you bought/sold property or have complex investments (like worthless securities), you might need them longer, so consider shredding or securely disposing of anything older than 7 years unless it's for property records.
Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.
7+ years. Although this depends on your filing circumstances, the IRS may ask you for supporting documentation for three to seven years after you file a return. Therefore, it's a good idea to save any document that verifies the information on your tax return for seven years or more.
Even if they're old statements, they should be shredded. Your name, address, phone number, and bank account information are in those statements, along with your habits, purchases, and banking history. Even if the account is closed, shred it anyway.
You should not put heavy-duty metal (binder clips, large staples, tools), electronics (hard drives, phones, CDs/DVDs, batteries), sticky/laminated items, clothing, food, or large amounts of cardboard/plastic in a paper shredder, as these can damage the blades, overheat the motor, or cause jams, fire, and safety hazards. Always check your shredder's manual, but generally avoid anything that isn't paper or small staples/clips.
Keep important papers like birth certificates, wills, deeds, titles, insurance policies, and Social Security cards in a safe deposit box or fireproof box that you'll be able to access quickly in an emergency. And set up a simple filing system to keep everything else in its place.
Keep One Month
- Credit card statements can be discarded once you review your statement unless there are tax-related expenses on them. - Utility bills should be saved until the following month's bill arrives showing that your prior payment was received.
Generally, CRA can only audit someone up to four years after a tax return has been filed, although, in some cases, such as cases of suspected fraud or misrepresentation, CRA can go farther back and there is no time-limit for the re-assessment.
There are a few you can shred right away:
Some people recommend keeping checkbook registers for at least 12 months in case “issues” (questions about payment) arise and because some checks may take a while to clear.
Here's a list of the most important documents you should file away for future reference.
After paying credit card or utility bills, shred them immediately. Also, shred sales receipts, unless related to warranties, taxes, or insurance. After one year, shred bank statements, pay stubs, and medical bills (unless you have an unresolved insurance dispute).
However, an office paper shredder can make fast work of destroying a small quantity of business checks. If you use a shredder, you'll want to make sure it cuts both vertically and horizontally. When you're finished, dispose of the shredding in a secure, non-public garbage drop off.
Many people don't even bother to look at these materials, with approximately 44 percent of junk mail thrown away without being opened. However, throwing out your unwanted mail in the trash or recycling bin could put you at risk of identity theft.
Based on the three-year rule, in late April 2025, you'll generally be able to discard most records associated with your 2021 return if you filed it by the April 2022 due date.
Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
You can generally destroy tax records for years older than three years from the filing date, but keep them longer (up to 7 years) if you claimed a bad debt/worthless securities deduction or for employment tax records (4 years); keep indefinitely if fraud is suspected. The six-year rule applies if you underreported income by more than 25%. Always keep your actual tax returns (Form 1040) and supporting documents (W-2s, 1099s, receipts) for at least three years, but potentially much longer depending on your situation, especially for property records and retirement info.
How long should I keep medical records? Hold on to medical bills for a year, unless there's an ongoing insurance dispute or you claim a tax deduction for medical expenses. Keep health insurance policies for as long as the insurance is active.